The U.S. Small Business Administration (SBA) published a proposed rule that would change the size standards used to determine eligibility for small business in federal contracting.
Our understanding of the rule is that it does two things: increases the size of businesses that are eligible for federal contracting programs and removes rules around sub-contracting to smaller businesses. We believe that the proposed rule will allow large businesses to qualify for the small business mandates in federal contracting and make it difficult for small businesses to compete.
Government contracting is a key strategy for small business growth. The proposed rule will likely close off contracting opportunities to small businesses. We urge the SBA to reconsider the size standards and maintain sub-contracting rules so that small businesses can do business with the federal government.